09 - 7th eirac plenary - sustainable chain management.ppt

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    EIRAC

    Sustainable Supply Chain ManagementEC project proposal

    Herman Journe

    Port of Amsterdam

    Ecoports Foundation

    7thEIRAC Plenary

    Brussel, 13/11/2009

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    Starting Point

    1. Sustainable Logistic Solutions no longer feasible as stand alone

    2. Increasing mutual influence of all stakeholders in the chain

    3. Need for cooperation between all stakeholders of the chain,

    public and private, for common solutions

    4. Need for standards to manage environmental risks

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    Motivation1. Market: logistic innovations needed to reduce costs

    2. Laws: environmental impact of goods transport to be reduced

    3. Increasing environmental risks require management tools

    stakeholders, reputation, license to operate, standards

    4. Improvements attainable in efficiency, cost and environment by

    approaching supply chain as a system

    5. But bottle necks to be solved to allow for switch to systems

    approachcompanies: no cost optimalisation on the full chain

    government: uncertainties around standards in implementing environmental laws

    6. Many sustainable solutions are already available

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    ObjectivesSet up and test ing o f

    1. a sustainable supply chain, indoor to indoor (not door to door)

    2. a basic management systemfor a sustainable supply chain

    3. an applied knowledge unit, to support on a day by day basis

    ongoing sustainable supply chain pilots

    4. a neutral, trusted, sustainable supply chain

    management organisation

    5. a network of good practice experience in sustainable

    chain solutions: best practice learning community

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    Approach

    1. Learning by doing

    applied operational research to be delivered to ongoing pilots

    2. Connect good practices from all partners into a chain system

    also from authorities with operational tasks in the chain

    3. Use lessons from on going (regional) sustainable chain project

    a.o. in NL and from experience with Ecoports Management Tools

    4. Choose for cradle to cradle as sustainability principle

    5. Operations and business driven

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    Demonstrators1. Three (or more) indoor to indoor supply chainsup and running in

    a sustainable way measured by global standards

    Logistic Concept: a 3 level logistic solutions approach:

    1. International plus national level2. Regional level inside countries

    3. Local port-city congested areas level

    2. Basic sustainable supply chain management system

    3. Basic sustainable supply chain management certificate

    4. Applied Knowledge Unit for daily operational research

    support in sustainable chain management

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    Logistic Concept: 3 level approach

    Each level has own characteristics and bottle necks

    And needs own solutions

    To be provided by different players

    Such as

    local logistics community and

    local environmental authorities

    But approaches can be driven by the same systems concept

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    Den Helder

    Logistic Concept: 3 level approach

    Level 1. (Inter-)national

    basic sustainable transport system

    Port-City area

    Transferium Road-

    Waterways/Rail

    Hinterland Hub

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    Den Helder

    Logistic Concept: 3 level approach

    Level 2. Regional Circle Line on water

    connecting industries with portsRegional industry

    Sites and road-

    water transfer

    points

    Daily waterway

    / Rail circle line

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    Den Helder

    Logistic Concept: 3 level approach

    Level 3 Port City Area system

    for sustainable transport

    Daily Transport

    service on

    waterways /rail

    within port-city

    area

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    Some Basic Requirements for successSuppor t ing Regulat ion

    By Companies:

    Example: management quality systems

    Example: different approaches to deal with congestion

    By Governments:

    Example: customs laws require systems approach in supply chain

    and cooperation between partners in the chain

    Example: limits for trucks entering certain (environmental) zones

    By Port Authorities:

    Example: take measures for CO2 reduction with 50%

    Example: limits in land lease contracts in yearly number of trucks

    Bu t standards needed!! !

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    Some lessons learnedECOPORTS

    Problem

    Large differences in implementation of environmental laws leading tolarge cost differences (no level playing field)

    Solut ion

    Basic risk environmental risk analysis system, basic environmental

    management system (build from ISO elements), basic certificate

    Results

    starts a process of awareness

    delivers transparancy in implementation of laws in practice

    exchanges cost and environmental effective solutions

    raised the level of environmental management to a basic quality

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    Initiated by Amsterdam Port Authority

    Brings 30 tons on 30 metres outside ship

    Same transhipment tempo as crane on quayside

    Capacity: 144 TEU

    No quaywall needed, no quay area needed

    Some lessons learned

    Now 3 year experience:

    Proven competing alternative for road transport in congested port city areas.

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    Working Packages1. Database and networkof good practice experience withsustainable solutions for operational activities in the supply chain

    2. Operational applications derived from lessonsfrom experiences in sustainable supply chain management

    in the fields of:

    Environment, safety, security, logistic costs, IT chain system

    3. Three indoor to indoorsustainable supply chainpilots: Development and test

    4. Quality criteriafor keeping a supply chain ona basic sustainable quality level

    and of a basic sustainable supply chainmanagement certificate

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    Working Packages5. An applied knowledge organisation , set up and test,based ondatabase of good practice experience, network of experience with

    sustainable solutions for the chain and applied research required in pilots

    6. Uniformity in supporting rules to be derived from best practiceexperience in implementing laws

    7. Training modulesto be set up of for key bottle neck issues preventing supplychains from becoming sustainable, including seminars and a learning community of practice

    8. Neutral and trusted intermediairy for sustainable supply chainmanagement

    9. Project Management, Communication, Dissemination, reporting, administration

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    Project partners

    Interest is shown by a number of

    companies,

    governmental organisations,

    ports